Switching to HF Now

I actually think your background would recruit better at a larger MM.  Those funds always have seats to fill and their investment style (a lot of quarter calling and trading) requires more of a brute force work ethic that you certainly developed in IB / PE.  Smaller SM’s have a longer time horizon and generally place less emphasis on intensely grinding out models and data pulls and more on the way you think critically.  Not always the case by any means, but I know smaller SM shops that don’t even look at former PE candidates because they want people who have a bit more flexibility in their investing mindset (as is required by the public markets).  

I think your background would get the most pushback on the following:

• Passion: HF workflow is way less structured than IB/PE.  It is on you to monitor newsflow, conduct research thoughtfully and scan for new ideas.  You have to be genuinely curious about the work to do well, and a background without public market investing will prompt these funds to question if you’re really into it.  I’d make sure you have several stocks ready to pitch and discuss extensively (long and short) as well as general knowledge about important news and the markets.  Being fluent in these conversations will be key.
• Are you able to handle the irrationality?  Obviously, the public markets are chaotic and behaving steadily in periods of huge losses and angry investors is something that not everyone can do.  This is a type of stress that is different from the fire drill grinds of IB, HF’s will be curious about how you would act with the longer periods of omnipresent pressure.  Definitely be prepared to talk about times where you overcame adversity or times where you were wrong and had to admit it. 
• Can you think independently?  Going through the process of good grades at a target to recruiting well into IB and recruiting well into PE generates a lot of people with similar backgrounds and similar mindsets.  HF’s value diverse backgrounds and want new perspectives.  Be prepared to talk about opinions that you have that differ from the masses, ideally with some sort of unique insight or data points to back it up.

I’m clearly biased but I think now is a great time to get into the HF space.  The times of 0 interest rates and BS companies’ stocks constantly grinding higher and getting funding are over.  Active management will be desired in times of weak S&P500 returns.  As a sign of the times, I’m starting to hear more about people who traditionally own equities shifting money into bonds for the long haul.